Ripple Labs, the company behind the crypto XRP, continues to battle the Securities and Exchange Commission (SEC). In a recent update, Ripple's Chief Legal Officer (CLO), Stuart Alderoty, provided crucial details on the next steps in this legal battle, which could well be fatal for XRP.
Ripple on the verge of defeat?
The SEC initially sued Ripple for selling XRP, which it considers unregistered securities. This action had major repercussions on the crypto market, leading to increased volatility in the price of XRP. Ripple disputed these allegations, saying that XRP is not a security and that the SEC misinterpreted the nature of the cryptocurrency.
However, in early October 2024, the SEC filed its notice of appeal, causing the price of XRP to drop by +15%. The American crypto regulator now intends to file its pre-argument declaration (Form C), this Thursday, October 17, 2024. Subsequently, Ripple will react with a counter-appeal and in turn plans to file its “Form C” a week after the SEC. The two parties will then discuss the timing of the briefs, with the SEC's first brief expected in three months (January 2025), followed by Ripple's response.
Stuart Alderoty indicated that the SEC would likely target sales of XRP on various trading platforms. Although Ripple is confident, the SEC could still win. Attorney Fred Rispoli said the SEC's chances of victory would depend on which judges are assigned. A panel of judges favorable to the government would increase Ripple's chances of losing to 80%.
Implications for the crypto market
This legal battle, which could well last until 2026, will have significant implications for the entire crypto market. Because a victory for Ripple could establish an important legal precedent, clarifying the regulation of cryptocurrencies in the United States. It could also encourage other cryptocurrency companies to challenge the SEC's actions.
Finally, the legal battle between Ripple and the SEC is far from over. With such high stakes, this case could well define the future of crypto regulation in the United States and beyond.
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